Tuesday’s Top Stocks
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‘Cough, cough’…is it for real? Monday’s trade was definitely a step in the right direction for the bulls. A broad-based rally that left gold bugs and smokers gasping, while sectors such as the semiconductors and retail continued to look en vogue with investors wallets, is just what a bull needs to see after a sustained grazing period. Our ETF friends finished up between .85% and 2.55%, with the Diamonds glittering to 52-week highs on some of its best volume (as measured by the cash index) in two weeks. Advancing issues held a solid lead over decliners by a 2:1 margin which also lends credibility to today’s light volume but ‘stealth’ bullish action rally.
I hope they poop on it. No, not Triumph the Insult Dog, but the media. If they start to get too giddy then surely it will be over in a NY minute. I have to say though, that personally I’m liking the action underneath the headline numbers as much as I have in a number of weeks. The leading semiconductors had a solid breakout today with confirming volume, and the last couple of sessions have witnessed breakouts taking hold, rather than being a 50/50 proposition in many individual growth stock names. The stocks in this esteemed category are also delivering this action on above-average volume. The bearish case, and the ‘pooh poohing’ of recent action will be that the overall volume as measured by the broader indices is still light and below average, and that the VIX has dropped too quickly and to levels that must certainly reek of ‘bull.’ For yours truly, that means that I’ll keep my horns pointed up, but ready to protect myself while navigating thru the trees that stud the market landscape.
Seriously though, with days like today, why bother wearing headgear overnight? By daytrading the market and following the bull’s path intraday, the path to a higher ground is laid out for us if we’re willing to follow the scent. Using our list of High and Low RS issues, we take those trades that are triggering out of classic reversal and continuation patterns as they lead the charge higher. Let the other guy worry whether or not positions that worked with today’s momentum will still smell like ‘bull’ tomorrow when we can make it to the bank today.
Volatility Readings:
| Volatility Index | Close | Net Change | Signals/Direction | % Above/Below 10 Day Moving Average | Significance |
| VIX ( $VIX.X | Quote | Chart | News | PowerRating) |
19.28 | down .92 | none | 9% below | Not At Extreme |
| VXN ( $VXN.X | Quote | Chart | News | PowerRating) |
26.62 | down 2.59 | CVR 3,6 Sell | 13% below | Â At Extreme |
Hottest Sectors :Â Semiconductors
(
SMH |
Quote |
Chart |
News |
PowerRating)
and Internet
(
HHH |
Quote |
Chart |
News |
PowerRating)
Weakest Sectors :Â Gold/Silver (XAU) and
Pharmaceuticals
(
PPH |
Quote |
Chart |
News |
PowerRating)Â
Tuesday’s HELVETICA>stocks to watch:
Technical
Strength Top of Range.
Stocks are scanned from TM’s Proprietary and
Technology 10 Momentum lists on the Indicators
page, as well as being hand selected, based on the most recent technical action.
This may include some or all of the following: abnormal volume, price patterns,
as well as bullish action off of technical price supports or clearance of
technical resistance in that day’s session.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Power Integrations | ( POWI | Quote | Chart | News | PowerRating) |
31.90 | high volume 52-week pattern b/o to close near highs of day |
582k | 746k |
| Brightpoint | ( CELL | Quote | Chart | News | PowerRating) |
31.60 | Closing at intraday consolidation pattern supports on daily chart, high volume 52-week b/o |
250k | 1,018m |
| Avid Technology | ( AVID | Quote | Chart | News | PowerRating) |
23.17 | High of day close, near consolidation b/o levels on daily chart |
689k | 404k |
| Digital Insight | ( DGIN | Quote | Chart | News | PowerRating) |
23.17 | High of day close on heavy volume, weekly handle b/o |
454k | 1,201m |
| Shufflemaster | ( SHFL | Quote | Chart | News | PowerRating) |
29.76 | Heavy volume bullish gap within weekly congestion pattern |
353k | 460k |
Technical Weakness Bottom of Range.
Stocks
are scanned from TM’s Implosion and
Technology
Implosion Lists on the Indicators page, as well as being
hand selected, based on the most recent technical action. This may include some
or all of the following: abnormal volume, price patterns, as well as bearish
technical action at key support, or resistance levels based on closing prices.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Oxford Health | ( OHP | Quote | Chart | News | PowerRating) |
37.12 | Daily test of price supports and 200-Day EMA | 1,048m | 768k |
| Costco | ( COST | Quote | Chart | News | PowerRating) |
30.63 | Bottom of range consolidation, Low RS daily, on engulfing bearish bar |
5,403m | 6,873m |
class=890430920-15102001>
class=890430920-15102001>Stock Reversal Setups Closing Basis.
Stocks that are setting up on a closing basis as potential long
or short reversal pattern
candidates. Candidates listed may have triggered on a closing basis, or close to
triggering ( my general rule is to list the pattern setup if it is within +/-.15
of trigger price). Patterns include basing patterns (“Slim Jims,
“1,2,3s”, Double bottoms)
consolidations, and triangle reversals. Background
technical supports in the form of Fibonacci levels, EMAs (DEMA=daily ema), RS, and former price
action are
used in the decision making process.
class=890430920-15102001>Long Reversals class=890430920-15102001>Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
| Entegris | ( ENTG | Quote | Chart | News | PowerRating) |
13.80 | Engulfing bullish bar thru 20 and 50-Day EMAs, with confirming volume |
479k | 664k |
class=890430920-15102001>
Short
Reversals
Closing Basis.
| Name | Symbol | Price | Technical Strength | Average Volume | Today’s Volume |
class=890430920-15102001>
Institutional
Favorites
and Institutional
Laggards.
The following stocks are selected from
the Nasdaq, S&P 500 & 600 Indices, and HOLDRs. These are normally heavily traded,
liquid issues that
are exhibiting relative strength or weakness, patterns (consolidations or
“Slim Jims”) , or last hour volume surges, indicative of follow through in the very near term.
Institutional
Favorites.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Qualcomm | ( QCOM | Quote | Chart | News | PowerRating) |
39.11 | 11,223m | 7,913m |
| BEA Systems | ( BEAS | Quote | Chart | News | PowerRating) |
12.95 | 9,764m | 6,549m |
| Lowes | ( LOW | Quote | Chart | News | PowerRating) |
51.96 | 4,799m | 12,833m |
| Veritas | ( VRTS | Quote | Chart | News | PowerRating) |
32.20 | 8,069m | 5,517m |
| Amazon | ( AMZN | Quote | Chart | News | PowerRating) |
43.02 | 8,653m | 11,149m |
Institutional
Laggards.
| Name | Symbol | Price | Average Volume | Today’s Volume |
| Altria | ( MO | Quote | Chart | News | PowerRating) |
38.98 | 9,791m | 9,602m |
| Procter Gamble | ( PG | Quote | Chart | News | PowerRating) |
88.40 | 3,307m | 5,312m |
Best of luck to everyone. Please use
protective stops on class=890430920-15102001> all trades.
Chris Tyler